CUSIP Request Activity Forecasts Capital Markets Pullback

Companies registered fewer bonds and stock to sell in the markets in January, presaging a slowdown in capital markets activity in the coming months, according to a new report from CUSIP Global Services, a unit of the American Bankers Association.

Corporations are pulling back from registering securities amid uncertainty about the economy and broad market weakness.

CUSIP Global Services creates codes, akin to serial numbers, for new securities. The unit received requests for 656 new stock codes in the U.S. in January, down 13% from 756 in December. CUSIP requests for corporate debt fell nearly 11% to 477 in January, from 533 in December.

Companies tend to requests CUSIP codes before offering new bonds or shares to investors.That makes registration requests a leading indicator of market activity.

“You can chalk it up to general risk aversion,” said Richard Peterson, a senior director at S&P Capital IQ, which manages CUSIP Global Services for the ABA. He added that plunging oil and commodity prices, lackluster corporate earnings, and concerns about emerging market economies have made chief financial officers wary of dipping their toes into the markets.

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